...2013 09:48AM ET Kroger Co (KR) Neutral Pro Value Score Good (8/10) KR may be excessively priced or has questionable fundamentals. The numbers don't tell a clear story. Pro Fundamental Score Strong (7/10) Pro Valuation from Historical Mult. 21.62% over Key Statistics Price Nov 15, 8:00PM 52 Week High 52 Week Low Market Cap Enterprise Value 42.60 43.85 24.19 21.98B 21.44B Revenue (TTM) Revenue (Quarterly YoY Growth) Net Income (Quarterly) EPS Diluted (Quarterly) 98.72B 4.58% 317.00M 0.60 PE Ratio (TTM) PS Ratio (TTM) Profit Margin (Quarterly) Return on Equity (TTM) Beta 14.15 0.2246 1.40% 37.22% 0.5893 EPS Diluted (Quarterly YoY Growth) 17.65% Company Description Exchange: NYSE Sector: Consumer Defensive Industry: Grocery Stores The Kroger Co. is an American supermarket chain founded by Bernard Kroger in 1883 in Cincinnati, Ohio. It reported US$ $82.2 billion in sales during fiscal year 2010. It is the country's largest grocery store chain and its second-largest grocery retailer by volume and second-place general retailer in the country, with Walmart being the largest. As of 2010, Kroger operated, either directly or through its subsidiaries, 3,619 stores. Price Performance, 5 Years KR 42.60 1 Year Total Returns Performance KR SWY N/A N/A WFM WMT N/A N/A Profitability Revenue (Quarterly) 22.72B Net Income 317.00M (Quarterly) Total Expenses (Quarterly) 22.13B YCharts Pro Stock Report | Nov 16, 2013 09:48AM ET Kroger Co (KR) Pro Value...
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...Kroger Company - 2005 A. Case Abstract This is a comprehensive strategic management case that includes the company’s financial statements, organization chart, competitor information, and industry trends. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. The Kroger Company, Inc., with headquarters in Cincinnati, Ohio (513-762-4000), operates over 2,500 supermarkets, 795 convenience stores, and 436 jewelry stores. The Kroger Company employs approximately 290,000 employees. The company achieved annual revenues of $56.4 million in fiscal year ending February 2005, compared to $53.7 million in 2004. Kroger is ranked #19 on the Fortune 500 list and is ranked as the third largest retailer in the world, behind Wal-Mart (#1) and the Home Depot (#2). The company has been in existence for over one hundred years and is the # 1 pure grocery chain in the United States with over 3,770 (including subsidiary businesses) stores in 32 states. Kroger and its subsidiary operations market food, pharmacy, and jewelry products. B. Vision Statement (proposed) Our vision is to be America’s supermarket, and to continue to provide innovation and unparalleled value to our customers, employees, and shareholders. C. Mission Statement (actual) Our mission is to be a leader in the distribution and merchandising of food, pharmacy, health...
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...Labor Laws and Unions: The Kroger Company Kroger is a grocery store chain established its first store in 1883 in Cincinnati, Ohio by Barney Kroger who was one of two original owners; he bought out his business partner in 1884 and opened his second store location. In 1901, the Kroger Company began placing bakeries in their grocery stores. In 1955 Kroger acquired Henke and Pillot Stores and turned those stores into part of the chain in 1966. In 1970 Kroger became the first grocer in America to test an electronic scanner. Kroger also pioneered consumer research for its grocery stores. Today Kroger has nearly 2,500 stores in 31 states under 28 different names, along with annual sales of more than $70 billion. Kroger currently ranks as one of America’s largest retailers. The Kroger Company has been operating for over 125 years and continues to be the most recognizable grocery store chain in the United States. (The Kroger Company 2012). Kroger is a unionized company and its employees are represented by the United Food and Commercial Workers (UFCW). Unions operate as the middleman between the employer and the employee. “Beliefs about the effects of a union at a person’s own workplace are critical determinants of intentions to vote for or against union representatives” (University of Phoenix, 2012). Currently unions account for 15.7 million workers in the United States, which is equal to one out of eight employees. There are advantages for employees of a unionized...
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...what benefit will they have on the company. As in any decision that is made whether business or not, there are always benefits and disadvantages to the decision made. Businesses must understand both the benefits and disadvantages of potential mergers and/or acquisitions in order to ensure they are making responsible and effective decisions which impact not only the business, but also how stakeholders perceive the business. “In recent years, mergers and acquisitions among U.S. corporations have hit an all-time high” (Boone, 2014, p. 160. The deals that result from mergers and acquisitions are often talked about for months and years within the business sector and can be worth millions and in some cases billions of dollars. These two types of business transactions are not only important to those directly involved with a business, but mergers and acquisitions are equally important to consumers and investors of a business. There are vast reasons behind why companies decide to undergo mergers and acquisitions and when analyzing some mergers and acquisitions those reasons can sometimes be buried deep within the details of the merger and/or acquisition. The decision to undergo a merger and/or acquisition can also demonstrate to the public the strength of those companies involved. Companies that may be experiencing tough times tend to be more willing to undergo one these business transactions and those companies that are strong tend to target companies that are struggling or aren’t as...
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...Grocers: Kroger 1. INTRODUCTION: CASE OVERVIEW AND KEY ISSUES The case Attention Shoppers: Executive Compensation at Kroger, Safeway, Costco and Whole Foods situation explains the costs and strategies related to a companies growth and expansion. Kroger is the main focus of this case. In 2006 Kroger’s was the second largest seller of groceries by revenue with an estimated $60 billion. The success of Kroger Company began in 1883 and which became one of the first chain stores in the country. Kroger then expanded its stores by buying out local competitors with low prices when the economy was suffering. Throughout the twentieth century, Kroger implemented several innovations to throw itself above the competitive advantage. By the 1950’s Kroger had built a reputation of producing fresh good quality products and began to label products with “sell by” dates and nutritional facts. Kroger took on multiple acquisitions helping push its expansion to the West. Under the full leadership of David Dillon Kroger increased revenue and lowered its debt dramatically and also found new ways to increase customer frequency. Kroger also sustained a four-month strike by the United Food and Commercial Workers union, which impacted not just Kroger, but Safeway, and Albertson’s. Retail grocery sales represent a significant amount of the U.S. economy. The industry that Kroger competes in is highly competitive. This resulted in Kroger reducing its operating costs in order to maintain profitability...
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... University of Phoenix September 25, 2013 Market structures allow companies in the same field to compete. Consumers benefit greatly from market structures by allowing consumers to pick and choose from many different producers. Monopolistic completion by definition is having a number of firms within a particular share of a market by having almost complete control of that market share. Duopoly by definition is when a market is dominated by two large firms. Monopsony by definition is when there is one specific buyer for a specific market. Oligopoly is when a market has a large number of sellers but only has access to a very few buyers. A monopoly occurs when there is one product or a service that is completely dominated by a single entity. Perfect competition occurs in a market structure that allows no barriers of entry. Governments implement practices to deter companies to create monopolies. A perfect market with globalization seems nearly impossible. To have a perfect market there are a few characteristics; selling companies are profit maximizing companies that operate on bottom line methods. Company products are similar and have to compete against each other. There are little to no barriers to enter the market. The number of competition is very large, and both sellers and buyers can adjust the price. The company I choose is the Kroger Co. The Kroger Co. was started by Barney Kroger in 1883. He invested his life savings to open the first store in Cincinnati. The...
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...The Kroger Company has been around since 1883, it was found by Bernard H. Kroger in Cincinnati Ohio (Kroger Company, 1999). The Kroger Company business ownership is a corporation with shareholders. As of September 2014, Kroger has 2,630 grocery stores, 785 convenience stores, 1,271 fuel centers, 37 food processing/ manufacturing facilities, 2,109 pharmacies, and 324 fine jewelry stores (2014). Kroger’s goal for the company is to “Provide customers with great products at good prices and shopping experience that makes them want to return” (2014). As stated above, Kroger does offer various services and products, varying by state and location. A few other services that I did not mention include wireless, video, and bill pay (2014). The ethics they live by are “Honesty, Integrity, Respect, Diversity, Safety, and Inclusion”, which can be found not only online but their personal handbook (2014). Kroger can be found online on Pinterest, Facebook, Twitter, and their personal website (2014). I was unable to find any specific information about the organization being ethical or unethical when it comes to the internet and social media sites. With that being said, I can only assume that everything they are practicing is ethical since I was unable to find any negative information about it. Kroger best fits in business services functional area because they are providing various services (groceries, jewelry, fuel, etc.). Resources Gale Encyclopedia of U.S. Economic History. (1999). Kroger...
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... Differentiating Between Market Structures 2 The Kroger Company has started in 1883, by the founder Barney Kroger, he had taken all of his life savings to open the first Kroger grocery store in Cincinnati, Ohio. “Over the next 130 years as the supermarket business evolved into a variety of formats aimed at satisfying the ever-changing needs of the shoppers” (thekrogercompany.com). There are more than 2,600 stores within 34 states and more than a dozen banners and their annual sales is in the billions. Kroger is one of the biggest grocery stores in the world. There are two departments that Kroger supermarkets, the bakeries and meat and seafood. History of Kroger “In the 1900s grocery stores bought their bread from an independent individual, but Barney Kroger has, come up with the idea to put the all of the main ingredients together to be able to make a profit” (thekrogerco.com). He decided that if he was to bake his own bread he would be able to decrease the price, so that the consumers would be able to afford and still make a profit. In the year of 1901 Kroger was the first grocery store to have their own bakery, and also was the first to be able to sell meat and groceries all in the same building. He even cook his own can goods. “Kroger operates 37 food processing facilities that make thousands of products that range from bread, cookies, and milk to...
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...Analysis Kroger Executive Summary This strategic analysis of The Kroger Company will take a look at the changing trends of grocery retailers, profitability and strategic position. Included is a PESTEL analysis and Porter’s Five Forces model for a closer look at Kroger and the industry. Competition is a big threat and since Rodney McMullen became CEO of The Kroger Company in January 2014 the company has rapidly gained market share and is currently second only to Wal-Mart (United States Department of Agriculture, 2014). With recent strategic acquisitions Kroger is better positioned to sustain their level of growth. There are several problem areas that Kroger will need to stay on top of and plan for how to combat those areas. We will provide a couple recommendations on the strategic direction that will most benefit and sustain competitive advantage for The Kroger Company. Introduction The Kroger Company was established in 1883 by a man named Barney Kroger who opened the first store in Cincinnati, Ohio. Since the opening of that store, Kroger has been an innovative leader in the grocery industry. With annual sales exceeding $108 billion it is one of the world’s largest retailers. Kroger can boast the following firsts: ● 1st to establish bakeries ● 1st to sell meat and groceries under one roof ● 1st grocery chain to routinely monitor product quality and scientifically test foods ● 1st to test an electronic scanner ● 1st grocer to formalize consumer research Kroger also manufactures...
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...Kroger Company is the biggest U.S. supermarket operator. The grocery chain of Kroger includes Ralphs, Fred Meyer, Smith’s and Food 4 Less. The company has a large network of over 2,400 stores across the United States. The company has strategic advantage against its smaller competitors. Kroger has worked hard to meet the needs of its customers through their “Customer First” strategy. It has also retained its customers through its strategic goals of low price, and fulfilling almost every need of the customers. History of Kroger In 1883, Barney Kroger invested his life savings of $372 to open a grocery store at 66 Pearl Street in downtown Cincinnati. The son of a merchant, he ran his business with a simple motto: “Be particular. Never sell anything you would not want yourself.” It was a credo that would serve The Kroger Co. well over the next 120+ years as the supermarket business evolved into a variety of formats aimed at satisfying the ever-changing needs of shoppers. With nearly 2,500 stores in 31 states under two dozen banners and annual sales of more than $70 billion, Kroger today ranks as one of the nation’s largest retailers. Many aspects of the company’s business today trace their roots to Mr. Kroger’s early efforts to serve his customers. Consider two specialty departments that today are regular fixtures in the company’s supermarkets – bakeries and meat and seafood shops. In the early 1900s, most grocers bought their bread from independent bakeries. But Mr. Kroger,...
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...traded company that I have selected is Kroger. Kroger is a grocery retail chain in the US. It operates supermarkets and multi-department stores under a number of banners including Kroger, Harris Teeter, Ralphs, Fred Meyer, Food 4 Less, Fry's, King Soopers, Smith's, Dillons, Jay C, QFC and City Market. According to The (Kroger Co. SWOT Analysis, 2015), the company holds the largest or the second largest market share position in 41 of the 49 major markets in which it operates. It ranks among the largest corporations in the US. Kroger's size provides it with significant pricing power over food producers, giving the company economies of scale over smaller supermarket operators. Kroger follows a strategy which has evolved to incorporate more elements of differentiation on factors other than price. The company has tried to identify various factors that drive customer visits and loyalty and has made several targeted investments to achieve the same. One such move is the increase in gasoline stations. The company has increased the number of stores with fuel centers to 1,240 in FY2014 from 376 in FY2003. Having more than 1,000 fuel centers is a key advantage for Kroger, enabling the company to drive traffic to its stores. In 2010, the company partnered with Shell to roll out the grocer rewards program in Cincinnati, Dayton, Knoxville, Nashville and San Diego. This program allows customers in participating markets to earn points and redeem them for savings on gasoline at Kroger Fuel Centers...
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...Executive Summary Kroger & It’s Vision Kroger is a company founded by and pretty much made what it is today by one man Bernard Kroger. It has a great base for people to come in and enjoy their products. Kroger is constantly refining its main strategy used to target people and get the best use out of its products. Kroger is always trying to make leaps above its competition and draw more people into its place of work. It has kept low prices since it started in the early 1900’s. Kroger is one of the few big retail chains out in the market today that still cares more about its customers than being the biggest and baddest company out there. Now with that said I’m not saying that Kroger doesn’t want to make the most money possible but what I am saying is that it still cares about the little guy. Kroger to the average person is the gentle giant. Its ranked 2nd in the nation in terms of stores behind Wal-Mart but in the grocery category its head honcho. It is the number 1 grocery store in America and plans to stay there for as long as possible and with the fact that they keep trying to reinvent themselves and add new stuff and new things to their stores each year it should not be that hard of a goal to accomplish. History of Kroger Kroger throughout the years has been an economic superpower in many different senses. Kroger was founded and made famous by one man with a dream. A dream to create a great Business with values and fundamentals that should...
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...Kroger Cody Butler, Ahmad Damra, & Doug Edwards Sullivan University Kroger Since it first began in the late 1800’s, Kroger had been a store motivated to expand its role in the community. After first starting out by selling grocery items to customers, it began to also sell bakery items and opened bakeries within the grocery store itself. This was a big convenience for the consumer to be able to shop for most of their grocery items within the same store. The company then set its sights on the meat industry by purchasing several meat markets and packing plants. This allowed them to provide cuts of meat to their customers so that they didn’t have to go to another store to purchase meats. Once again, they found a needed service and expanded their role to capitalize on it. [ (Kroger, 2012) ] Over the years, Kroger’s expansion has followed much of the same lines. Once a service or need in the community is identified, the company researches their role and how they can provide this service within the Kroger store. Some ideas stay and are profitable while others fall by the wayside due to being too costly or not the right fit for the Kroger store. Consumers respond to these services and keep coming back to the Kroger store for their grocery needs as well as other needs that are not grocery related. [ (Kroger, 2012) ] One example of this is the Kroger pharmacy. This service allows the customer to buy their pharmacy items from Kroger and their prescriptions can be...
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...Business and Corporate Level Strategies The Kroger Corporation is one of the retailers chain in America specializing in the manufacturing and processes of food items in its supermarkets. It was founded by Bernard Kroger in 1883 and its headquarters are located in downtown Cincinnati, Ohio. Kroger is one of the largest grocery store chains in American grocery industry (The Kroger Co, 2010)and is considered as the second largest general retailer in the country, with Wal-Mart being the largest (Fortune 500, 2009). The Company’s supermarket and multi-department stores operate under banners, including Kroger, Ralphs, Fred Meyer, Food 4 Less, King Soopers, Smith’s, Fry’s, Fry’s Marketplace, Dillons, QFC and City Market. Kroger operates 40 manufacturing plants, primarily bakeries and dairies. Business-level strategies are the plans or methods, whicha company uses to conduct various functions in their business operation(Shah & Joseph, 2011). Kroger Co. has several strategies, which it implements to be able to compete with other large companies in the United States. Coordinate Unit Activities is one of the strategies, which Kroger Co. used to coordinate the different departments that it operates. This enables it to work towards a common goal that has seen the company be able to emerge top on the operation. In addition, the employees are able to be awarded their duties according to their qualification using this method and thus able to employ skilled labor well. Identification...
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...the late 1800’s, Kroger had been a store motivated to expand itsrole in the community. After first starting out by selling grocery items to customers, it began toalso sell bakery items and opened bakeries within the grocery store itself. This was a bigconvenience for the consumer to be able to shop for most of their grocery items within the samestore. The company then set its sights on the meat industry by purchasing several meat marketsand packing plants. This allowed them to provide cuts of meat to their customers so that theydidn’t have to go to another store to purchase meats. Once again, they found a needed serviceand expanded their role to capitalize on it. Over the years, Kroger’s expansion has followed much of the same lines. Once a serviceor need in the community is identified, the company researches their role and how they canprovide this service within the Kroger store. Some ideas stay and are profitable while others fallby the wayside due to being too costly or not the right fit for the Kroger store. Consumersrespond to these services and keep coming back to the Kroger store for their grocery needs aswell as other needs that are not grocery related. One example of this is the Kroger pharmacy. This service allows the customer to buytheir pharmacy items from Kroger and their prescriptions can be readied while they shop forgroceries. Another example is Kroger gas stations. Most are right outside the Kroger store in theparking lot. Kroger provides a discount...
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